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How far can you extend a brand before it breaks?

Just how much pull does the Martha Stewart name exert on shoppers these days? One might assume, based on the aggressive expansion plans of Martha Stewart Living Omnimedia, that there's still a lot of warmth left in the hearts of American consumers for all things Martha. Many industry watchers, however, are wondering if the brand hasn't become overly "omni".

Ms. Stewart's retail career began when she became a Kmart spokeswoman in 1987. The Martha Stewart Living Everyday line at Kmart didn't launch until 1997, but blew up with revenues peaking at $1.6 billion in 2002. Ms. Stewart's relationship with Kmart began to sour after a deal in 2005 was reached with Macy's for a line of home products.

Since then, the brand has expanded to include crafts sold at Michael's and Jo-Ann Fabric, home improvement goods at Home Depot, pet supplies at PetSmart, and now office supplies at Staples. A deal signed in December to bring Martha Stewart boutiques to J.C. Penney starting in 2013 has led to a lawsuit with Macy's.

The move to offer office supplies at Staples — including filing cabinets, sticky notes, journals and rubber bands — was seen by some as an example of her moving into too many categories. In a recent online discussion on RetailWire.com, retailing experts considered if Martha Stewart, the brand, was becoming overextended.

Retail consultant Richard Seesel wondered if the J.C. Penney deal was as big a win/win as it's been made out to be.

"Angering its biggest account (Macy's), that has invested a lot of floor space and ad space behind the brand, will backfire," he wrote on RetailWire. "Macy's didn't hesitate to drop Liz Claiborne, and its volume has hardly suffered for it. JCP also has a right to be concerned about what happens to the Martha brand cachet over the long run, and whether it helps the store broaden its appeal to a younger consumer."

Mr. Seesel pointed out that the retail world is littered with designer and celebrity brands that have overextended themselves. "Pet supplies and office supplies may be a bridge too far" for Martha Stewart, he said.

A number on the RetailWireBrainTrust panel saw the advance into office supplies as a move with some merit, but with notable caveats.

Wrote Paula Rosenblum, managing partner, RSR Research: "In a space like office supplies, where consumers often don't know which of the big-three they've left, at least a consumer will be able to say 'Oh right, the one that sells Martha Stewart stuff.' I think it kind of works."

"For Staples the female shopper is an elusive target, so it makes sense — on the surface," wrote David Slavick, VP, retail consulting, Customer Communications Group. "Martha provides new news to what is an undifferentiated product category. It creates a spike, awareness and support on the floor in-store and then there will be a maintained presence on the shelf. Doing this in advance of Back to School is smart. Will it have a significant incremental effect on their business? No."